New Law a Boon for Charitable Contributions
Giving for certain donors was made easier by the omnibus tax bill passed by congress at the end of last year, and signed into law by President Obama on December 18, 2015. One of the key provisions of the Consolidated Appropriations Act of 2016 is to permanently allow tax-free, “qualified charitable distributions” from some individual retirement accounts.
“Those who give to Marlboro cite so many reasons for their generosity: the engaged faculty, the innovative curriculum, the opportunity for future students to follow their intellectual passions,” said Kevin Quigley, Marlboro president. “Now they have one more reason, and that is the tremendous tax benefit extended by this new law.”
The provision allows people aged 70½ and older to donate up to $100,000 each year, directly from their IRA to charities, tax-free. This is good news for many in that age range who are required to make mandatory withdrawals from their IRAs, and can now contribute those withdrawals without incurring any tax on their earnings. While these kinds of charitable IRA contributions had been voted in temporarily for several years, the new law makes the allowance permanent—a win-win for both donors and charities.
“In an effort to make a Marlboro education accessible to more diverse students, the college is increasingly reliant on the generosity of foundations and individual donors,” said Kevin. “This tax bill is exceptional good news for individuals who want to support this unique Marlboro learning community for years to come.”